Bank of Maharashtra reports more than double profit to Rs 840 cr in Q4

State-owned Bank of Maharashtra (BoM) on Monday reported a more than two-fold jump in its net profit to Rs 840 crore for the March quarter, helped by a decline in bad loans and a rise in interest income.

The bank had earned a net profit of Rs 355 crore in the year-ago period.

During the quarter, the bank's total income increased to Rs 5,317 crore as against Rs 3,949 crore a year ago, BoM said in a regulatory filing.

Interest income grew to Rs 4,495 crore during the period under review, from Rs 3,426 crore in the corresponding quarter a year ago.

The bank's board has recommended a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023.

Gross Non-Performing Assets (NPAs) were reduced to 2.47 per cent of gross advances as of March 31, 2023 from 3.94 per cent by the end of March 2022.

Net NPAs also came down to 0.25 per cent of the advances from 0.97 per cent at the end of 2022.

The fall in bad loans ratio helped cut the provisions towards NPAs for Q4FY23 to Rs 545 crore as compared with Rs 568 crore a year ago.

The board also approved a proposal for raising capital aggregating up to Rs 7,500 crore through Follow-on Public Offer (FPO)/ Rights issue/ Qualified Institutional Placement (QIP)/ Preferential issue or any other mode or combination in 2023-24.